OMB Watch Presses IRS on Bright-Line Political Intervention Rule for Charities, Religious Orgs

PRESS RELEASE
-For Immediate Release-
June 3, 2008

Contact: Brian Gumm, (202) 683-4812, bgumm@ombwatch.org

OMB Watch Presses IRS on Bright-Line Political Intervention Rule for Charities, Religious Organizations

WASHINGTON, June 3, 2008—In recent comments to the Internal Revenue Service (IRS) regarding the agency's guidance priorities for 2008-2009, OMB Watch reiterated the need for a bright-line rule that unambiguously defines prohibited political intervention activities for charities and religious organizations incorporated under Section 501(c)(3) of the Internal Revenue Code.

In its comments, OMB Watch noted that a clear definition of what is and is not allowed of 501(c)(3) organizations is urgently needed to safeguard basic constitutional rights of free speech and association. It is also necessary to remove the chilling effect of the current, vague facts-and-circumstances test so that 501(c)(3) organizations can become fully engaged in activities that support election reform and the goals of the Help America Vote Act, according to the group's comments.

Kay Guinane, Director of Nonprofit Speech Rights at OMB Watch, said, "Charities need to know that their important, valid issue advocacy and voter education efforts will not spark investigations by the IRS."

The organization's comments also explain that the bright-line rule issue does not involve a large number of individual taxpayers or large amounts of money. However, said OMB Watch, it is fundamental to something of greatest importance: the healthy functioning of our democracy.

Guinane said, "By protecting the ability of the nation's only nonpartisan sector to speak out on the issues of the day, on any day, on any issue, no matter how controversial, the IRS can ensure debate on public policy issues is informed by the expertise and public interest perspective of 501(c)(3) organizations."

The full text of OMB Watch's comments is available at /files/npa/commentsguidance.pdf.

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OMB Watch is a nonprofit watchdog organization dedicated to promoting government accountability, citizen participation in public policy decisions, and the use of fiscal and regulatory policy to serve the public interest

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